EU pressing ahead with Microsoft case

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The European Union executive has said it would press ahead with
an anti-trust case against Microsoft despite the company settling
its differences with two groups that supported the EU action.

The European Commission said on Monday that the settlements
reached between the software giant and Novell, and with the
Computer and Communications Industry Association (CCIA), do "not
change any elements of Microsoft's conduct in the market".

The commission in March slapped a record fine on Microsoft and
ordered it to undertake changes to its all-conquering Windows
operating system after ruling that it had abused its market
dominance in Europe.

Last month Microsoft launched an appeal against the ruling at
the Court of First Instance (CFI) of the EU's Court of Justice.

Commission spokeswoman Amelia Torres said the company's
settlements with the two rival groups "do not alter the necessity
for immediate implementation of the remedies in order to restore
effective competition in the market".

"Secondly, we do not see how the interim measures case before
the CFI can be affected," she added in a statement.

"The decisions by Novell and the CCIA to no longer participate
in these proceedings do not change the facts before the court."

Microsoft said on Friday that it would pay a settlement of
$US536 million ($A703 million) to Novell to resolve an anti-trust
dispute between the companies involving Novell's NetWare operating
system.

Novell agreed to end its claims that Microsoft had harmed
NetWare and also to withdraw from participation in the European
Commission's case against Microsoft.

Separately, Microsoft said it had also reached an agreement to
settle its differences with the CCIA, a trade group backed by many
Microsoft rivals.

Under the deal, Microsoft will compensate the CCIA for certain
legal expenditures and become a member of the group, which
undertook in return to withdraw from the EU anti-trust action.

Torres said it was the CCIA's right not to pursue its complaint
given that Microsoft was now signing up to the group.

"I should stress, however, that anti-trust enforcement by the
commission does not hinge upon complaints by individual parties,
but is geared towards protecting the consumer's interests," she
said.

"Therefore, the commission is free to examine the facts in the
CCIA complaint on its own initiative."

After Microsoft previously reached settlements with Sun
Microsystems and AOL Time Warner, the latest agreements leave only
Real Networks supporting the EU case.

At a conference call with reporters, Microsoft chief legal
counsel Brad Smith declined to say whether the company is in talks
with Real Networks.

But asked if the Novell and CCIA settlements would help
Microsoft's legal appeal against the EU ruling, he said: "It can't
hurt."

Pressed on whether Microsoft is still seeking an out-of-court
settlement with the commission, Smith said: "It takes two to
settle; it only takes one to litigate."